Diageo said today (17 October) that trading during its first quarter was in line with profit forecasts it made at its annual results in August.

The UK drinks giant predicted that it would see organic operating profit growth of at least 7% for the 2007 fiscal year.

Diageo CEO Paul Walsh said: "'Trading in the first quarter supports that guidance and therefore we reiterate that fiscal 07 guidance this afternoon.

"In North America, in this first quarter Diageo has again gained share in a beverage alcohol market which continues to benefit from positive demographics and the consumer's preference for premium brands."

Walsh insisted that Diageo had performed better in Europe and had seen "double-digit" revenue growth in Russia. However, these results had been offset by weakness in Spain and continued slower Guinness sales in Ireland and the UK.

Diageo also saw "continued strong growth" in Latin America during its first quarter, he added.